UNIVERSITIES have been urged to show "serious restraint" in what they pay their vice-chancellors.

Jo Johnson, the Universities Minister, said it is unacceptable for institutions to be “ratcheting up” salaries at a higher rate than inflation.

He said: "I think there are legitimate concerns about how the rate of vice-chancellor pay has been growing" he said. "I would urge the sector to show leadership in this respect."

His comments came after Bournemouth University's John Vinney received a 20 per cent rise earlier this year, taking his pay and benefits to just over £300,000.

And this week the yacht-owning vice-chancellor of the University of Bolton, George Holmes, said university bosses should not be ashamed of their salaries.

Prof Holmes said it is better for students to be taught by someone who is successful and owns a Bentley.

Prof Holmes, who earns an annual salary of £222,120, defended the pay packets of vice-chancellors, saying that if anything they are not paid enough.

"I have had a very successful career,” he told The Financial Times. “I hope students use their education to get a good job and then they can have a Bentley. Do you want to be taught by someone who is successful or a failure?"

A spokesman for Bournemouth University said: "Professor John Vinney received a pay rise in 2016, and a non-consolidated performance related payment, both set by the university’s independent remuneration committee, to reflect his leadership of BU. His basic salary remains in line with the average salary when compared across the sector."

At the Arts University Bournemouth, vice-chancellor Stuart Bartholomew has a salary of £188,046 and a total package, including benefits, or around £217,000.

A spokesman said: "In the most recent accounting year, the Principal and Vice Chancellor had a salary of £188,046 with normal additional employers pension contributions consequent upon changes in national pension rules.

"Over the last five years the salary has increased by 2.8 per cent per year, which is consistent with the average cost of living increase for all employees at the university. The salary is significantly below the UK average of £280,000 remuneration for university vice chancellors."